Lowers cost of debt to 5.36 percent
BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE:WTR) announced today that its 2010 financing
plan successfully lowered its overall cost of debt, which has resulted
in interest expense savings for the company and lower bills for
customers than would have otherwise been required. If the company had
the same cost of debt that it had at the end of 2000, its interest
expense would be over $27 million dollars more on an annual basis, and
each customer's monthly bill would have been $2 more.
In 2010, the company worked diligently to access the markets at
favorable interest rates including borrowing $70 million at 4.98 percent
in June through a private placement at Aqua America, and issuing $141
million of tax exempt bonds at 4.75 percent at its largest subsidiary,
Aqua Pennsylvania. Both companies also were able to renew various lines
of credit at more favorable rates than before. Aqua America's long-term
debt now has a weighted average cost of 5.36 percent versus a weighted
average cost of 7.20 percent at year end 2000.
The proceeds from these financing activities will be used by Aqua
America to help finance part of the company's $1.5 billion five-year
capital plan to enhance the delivery infrastructure system for its
customers, most of which will be funded by internally generated cash and
earnings.
Aqua America Chairman Nicholas DeBenedictis said, "We have used our
strong balance sheet and credit rating (Aqua Pennsylvania S&P A+), which
have afforded us record low borrowing rates, to access the capital
markets so we can help rebuild our nation's water and wastewater
systems. Our ability to do this impacts the areas we serve by creating
jobs and sustainable water and wastewater infrastructure to support
economic growth."
Aqua America is one of the largest U.S.-based, publicly-traded water
utilities serving almost 3 million residents in Pennsylvania, Ohio,
Illinois, Texas, New Jersey, Indiana, Virginia, Florida, North Carolina,
Maine, Missouri, New York, and Georgia. Aqua America is listed on the
New York Stock Exchange under the ticker symbol WTR.
This release contains forward-looking statements within the meaning of
The Private Securities Litigation Reform Act of 1995 that address, among
other things: the company's lower cost of debt and resulting interest
expense savings and lower customer bills, the use of proceeds from
financing activities to help finance part of the company's five-year
capital plan to enhance the delivery infrastructure system, the use of
internally generated cash and earnings as the main source of funding the
five-year capital plan, and the proposed impact from rebuilding water
and wastewater systems on creating jobs, sustainable water and
wastewater infrastructure and supporting economic growth. There are
important factors that could cause actual results to differ materially
from those expressed or implied by such forward-looking statements and
other key factors that we have indicated could adversely affect our
business and financial performance discussed in our Annual Report on
Form 10-K for the fiscal year ended December 31, 2009, which is on file
with the Securities and Exchange Commission. Aqua America is not under
any obligation—and expressly disclaims any such obligation—to update or
alter its forward-looking statements whether as a result of new
information, future events, or otherwise.
WTRF
Aqua America, Inc.
Mia Angiolillo
Senior, Communications
Specialist
610-520-6342
mcangiolillo@aquaamerica.com
or
Brian
Dingerdissen
Director, Investor Relations
610-645-1191
bjdingerdissen@aquaamerica.com
Source: Aqua America, Inc.
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